A judge has stymied Metrolinx’s effort to cancel a $770-million light rail contract with Bombardier Transportation.

Judge Glenn Hainey of the Ontario Superior Court today granted the company’s request for an injunction to prevent the provincial transportation agency from terminating the deal without first undergoing a dispute resolution process.

Bombardier issued a statement Wednesday afternoon saying it was unfortunate the company had to resort to the courts on the matter and claiming they are “eager to sit down with Metrolinx to find a clear path forward; one that delivers value to all parties.”

“The decision confirms our belief that Metrolinx acted inappropriately in seeking to avoid the dispute resolution provisions of the contract,” the statement said.

Metrolinx had not commented on the ruling by midday.

Metrolinx alleges that Bombardier (TSX:BBD.B) has repeatedly failed to deliver a prototype vehicle on time for the scheduled 2021 opening of the $5.3-billion Eglinton Crosstown line, citing deficiencies in the company’s operations in Mexico and Thunder Bay, Ont.

It has said Bombardier’s injunction is a tactic to force it into months of litigation that would make it impossible for another supplier to provide the vehicles on time.

Bombardier has rejected Metrolinx’s allegations, saying it will deliver the vehicles on time by November 2018, well before the Eglinton Crosstown tracks are even built.

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Bombardier wins battle with Metrolinx, which wanted to cancel contract

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